Yes, Get Pre-Approved First
Get pre-approved for auto financing before you shop for a used luxury car like a 2020 Porsche 911. Pre-approval locks in your budget, speeds up the buying process, and strengthens your position to negotiate price and interest rates.
Most lenders offer 5 to 8 percent APR for buyers with strong credit. They often require 10 to 20 percent down. Sales tax and fees add 8 to 10 percent to the car price. For a $130,000 911, that means $10,400 to $13,000 extra. Pay this in cash or roll it into the loan if allowed.
Here are estimated monthly payments at 6 percent APR:
| Down payment | Amount financed | Est. monthly, 60 mo | Est. monthly, 72 mo |
|---|---|---|---|
| 10% ($13,000) | $117,000 | $2,262 | $1,938 |
| 20% ($26,000) | $104,000 | $2,010 | $1,722 |
Notes on these numbers:
- Rolling in 8 to 10 percent tax and fees raises the financed amount by $10,400 to $13,000.
- Top rates go to FICO scores of 720 or higher. Scores below that face 8 to 12 percent APR or more.
- Loan terms run 48 to 84 months. Longer terms cut monthly payments but increase total interest paid.
Pre-approval beats dealer financing every time. You know your max loan and rate range before you spot the perfect car. Dealers match or beat your rate only when you show proof. You focus on the car and price, not surprise finance fees.
Practical Steps to Get Pre-Approved
Follow these steps to prepare:
- Check your credit score at AnnualCreditReport.com. Fix any errors first.
- Shop quotes from three lenders: your bank, a credit union, and an online option. Request soft credit pulls to avoid dings.
- Plan 15 to 20 percent down on a $120,000 to $150,000 911. Bigger down payments lower your APR and meet lender rules for luxury cars.
- Stick to 60 to 72 month terms. Longer ones risk you owing more than the car is worth if values drop.
- Ask about loan-to-value limits. Some cap luxury loans at 100 to 110 percent of car value, which limits financed taxes and fees.
- Compare full APR, not just payments. Spot add-on products and origination fees.
- Look at certified pre-owned 911s. The warranty cuts repair risks and can improve loan terms.
Budget for full ownership costs. Insurance on a 2020 911 runs $2,500 to $4,000 yearly. Maintenance and repairs add $1,500 to $2,500 per year. Factor these in before you sign.
Sidekick models your 2020 911 costs, payments, taxes, insurance, and upkeep to match your budget.